After scratching away at the dam wall for a while, it seems that the wall is now crumbling for ASX-listed mining software provider K2fly, with a wave of giant mining companies signing on recently for its unique “RCubed” resource governance software. Latest potential devotees to K2fly’s software include BHP Billiton spin off, South 32, and Vale Australia, a subsidiary of Vale S.A, the largest iron ore producer in the world today.
Both have signed initial purchase orders for RCubed and whilst the parties have agreed to work on “proof of concept” solutions first with K2fly, it is now looking like the Perth based ASX-listed software upstart is wrapping up most of the mega miners with RCubed.
The company previously announced that both Rio Tinto and Gold Fields Ltd had also signed on for RCubed.
Vale is the world’s largest iron ore and nickel miner and it also produces manganese, platinum group metals, copper and coal. South32 is a globally diverse miner that produces bauxite, alumina and aluminium, amongst a raft of other metals from sites across four continents, including Australia and North America.
K2fly will immediately commence work on proof of concept designs for the two tier-1 firms and whilst the purchase order amounts are not material at this stage, the deal will potentially see K2fly add its first NYSE company in Vale S.A to its growing client list.
RCubed helps to facilitate mineral resource and reserve reporting and K2fly maintains that its software is able to work with multiple reporting codes including JORC that is used in Australia and elsewhere.
RCubed essentially brings in an annuity fee for K2fly and every major that it adds to its client list is potentially a significant contributor to its base line annual recurring revenue stream – the metric that is often used to value tech companies.
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